Package scheme of incentive 2013

WELCOME

Promotion of industrializationn

VISION

To make Kolhapur as one of the most preferred investment

destination in Maharashtra leading to Textile, Engineering, Agro

base, Auto component Industries

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Objective

To augment & improve the supportive Infrastructure to

facilitate Industrial growth.

To make Kolhapur as industrial hub for production of

qualitative Textile, Foundry & Agro base.

PSI 2013 Coverage – Eligible Industrial Units in Pvt., Co-op,

Public and Joint sector

Industries in 1st Schedule of IDR Act 1951 Manufacturing enterprises under MSMED 2006 IT & BT manufacturing units Cold storages Mechanized Food/ Agro processing industries

Dairy, Fruit and Vegetable Processing Grain Processing Fish Processing Packed foods Non alcoholic beverages from fruits & vegetables

New Unit :- A unit set up for the first time by an entity in any taluka where there is no Existing Unit set up by the same entity and satisfies following conditions

It is not an Existing Unit

or

At least one of the effective step is completed on or after 01.04.2013.

a) Effective possession of Land.

b) Constitution. c) MPCB consent to Establishment

d) E M-1 ( If Obtained) / IEM

or

It is not formed as a result of re- establishment, mere change of ownership, constitution or revival of existing unit.

Existing Unit:- Unit satisfying following criterion

A unit in production prior to 01.04.2013, or

A unit which has been granted EC or has availed any incentives (Ex St Duty) under earlier scheme, or

A unit which has filed a valid application under PSI 2007 on or before 31.03.2013

Expansion / Diversification :- Additional FCI on or after 01.04.2013 for manufacture of same or different products provided

Additional Investment should be more than 25% of Gross FCI of immediate previous year (Min FCI Rs 25 lakhs for MSME and Rs 5 Crs for others) and,

Additional FCI should result in increase in capacity by at least 25% and,

Additional FCI should result in increase in employment by atleast 10% .

Implementing Agencies Sr. No.

Category of Industrial unit

Implementing Agencies

1 Micro & Small Manufacturing Enterprises

District Industries Centre

2 Medium Manufacturing Enterprises

Regional Jt. Director of Industries

3 Large Scale Industries/Mega

Project/Ultra Mega Projects

Directorate of Industries, Government of Maharashtra.

Defination

MSMEs :- As per MSMED Act, 2006.

Large Scale units :- Investment more than medium mfg.

enterprises as per MSMED Act, 2006, but less than the mega projects

Mega Project / Ultra Mega Project

Type of unit Taluka /Area Classification

Minimum Fixed Capital Investment

(Rs. in Crs)

Minimum Direct

Employment (Nos.)

Mega Project A & B 750 1500

C 500 1000

D & D+ 250 500

Ultra Mega Project

Entire State 1500 3000

Financial Incentives for MSMEs/LSI

Area / Zone

Ceiling as % of FCI

No. of Years

MSME LSI MSME LSI

A -- -- 7 7

B 20 -- 7 7

C 40 30 7 7

D 70 40 10 7

D+ 80 50 10 7

Industrial Promotion subsidy (MSME)

Area IPS

Group B Taluka SGST on local sales minus ITC or Zero whichever is more + CST payable + 20% of ITC

Group C Taluka SGST on local sales minus ITC or Zero whichever is more + CST payable + 30% of ITC

Group D Taluka SGST on local sales minus ITC or Zero whichever is more + CST payable + 40% of ITC

Group D+ Taluka SGST on local sales minus ITC or Zero whichever is more + CST payable + 50% of ITC

SGST As per Govt. Resolution dtdd.14/02/2018 IPS of 100% of Gross SGST for MSMEs .

Industrial Promotion subsidy (LSI)

Area IPS

Group C Taluka 60% of SGST on 1st sale in Maharashtra minus ITC or Zero whichever is more

Group D Taluka 70% of SGST on 1st sale in Maharashtra minus ITC or Zero whichever is more

Group D+ Taluka 80% of SGST on 1st sale in Maharashtra minus ITC or Zero whichever is more

No Industries District & Vidarbha, Marathwada

90% of SGST on 1st sale in Maharashtra minus ITC or Zero whichever is more

Naxalism Affected Area 100% of SGST on 1st sale in Maharashtra minus ITC or Zero whichever is more

Interest S/S :- All New MSMEs Manufacturing enterprises in area other than A Group

are eligible for Interest subsidy. The Interest subsidy will be payable on term Loan @ 5% effective rate of interest (after deducting penal/compound interest, interest receivable under any other scheme)

Interest S/S should not exceed power bill paid during that year.

Power Tariff Subsidy :- All New MSMEs Manufacturing enterprises in area other than A

Group are eligible for power tariff subsidy @0.50 per unit for a period of 3 years.

Incentives for strengthening MSMEs and LSIs

A) New & Expansion MSME in all categories of areas will be eligible for following incentives

i) 5% subsidy on capital equipment for Tech up- gradation, max Rs 25 lakhs

ii)) 75% subsidy on expenses on quality certification, max Rs 1 lakhs

iii)25% s/s on capital equipment for cleaner production, max Rs 5 lakhs

iv) 75% subsidy on expenses on patent registration. max Rs 10 lakhs for national & Rs 20 lakhs for international

B) Incentive for Credit rating of MSMEs in all areas

75% of cost carrying our rating by Small Industries Developments Bank of India / Govt. accredited credit rating agency max Rs 40,000/-

C) Incentives for MSME and LSI New & Expansion

i) 75% of cost of water audit, max Rs 1 lacs

ii) 75% of cost of energy audit, max Rs 2 lacs

iii) 50% cost of capital equipment for recycle/ conserve water, max 5 lacs

iv) 50% of cost of capital equipment for improving energy efficiency, max Rs 5 lacs

Non fiscal Incentives

Electricity Duty Exemption :- New MSME and LSI for eligible period. ( From C - Zone onwards)

Stamp Duty Exemption :- For New as well as for expansion during investment period (Land & for Loan purposes) (Article 6- Hypothecation, 25 – Conveyance, 33- Further charge on mortgaged property, 36- lease and 40- Mortgage) Notification of R&F Dept dated 14th May 2013.. ( From C – Zone onwards )

Annual Cap on Incentives during

Eligibility Period Incentives will be disbursed equitably during entire

eligibility period of the unit with a provision for carry forward.

Total admissibility Rs 1000 for 10 years , unit will be disbursed max Rs 100 every year

Suppose annual claim during 1st year comes to Rs 150, Rs 100 will be disbursed and Rs 50 will be carried forward in next year

If during 2nd year annual claims comes at Rs 75, total will be 75+ 50 = 125, Rs 100 will be disbursed and Rs 25 will be carried forward to 3rd year

When to Apply for EC

Only after completion of effective steps but not later than 30.09.2018 or till a new policy comes into force.

Unit shall acquire and pay for the assets and commence commercial production within investment period.

Delay in production and application will be proportionate curtailment of incentives and eligibility period.

Investment period will be from date of application or the date suggested by the unit (within the scheme period)

for MSME – 3 years

For LSI – 4 years

For Mega/ultra Mega- 5 Years

How to apply for PSI 2013 ?

1. Online application on www.di.maharashtra.gov.in

(New unit and Expansion unit )

2. Land Documents

a) in MIDC Area –Possession with reg. Lease Deed/ Deed of Assignment

b) Non-MIDC Ares – Reg. Doc. with N.A ( Industry) acknowledgement receipt of application made under Section – 44 A.

3. Constitution (Prop./Partnership/Co-op. Soc./

Memorandum and Article of Association )

4. Project Report/Profile.

5. Authorization for signing of application, execution of agreements etc.

Bharatratna Dr. Babasaheb

Ambedkar Special PSI ( SC /ST)

Eligibility of Units

Sole Proprietorship 100% equity of SC/ST entrepreneur

Partnership 100% equity of SC/ST entrepreneur

Co-operative Sector unit Registered under co-op. Act & having 100% equity of SC/ST entrepreneur

Private / Public Limited 100% equity of SC/ST Shareholders

Note- Entrepreneur have to submit Caste certificate along with Caste Validity certificate of Components Authority

Salient features of Policy Scheme is applicable to all Eligible Industrial

units cover under Para 1.2 of PSI 2013

The Scheme is applicable to IT/ITES units

Eligible unit is Group A and B will Eligible for Group C benefits

Eligible unit is Group C and D will Eligible for Group D+ benefits

This Scheme is applicable to new as well expansion.

Additional Incentives All New MSMEs units are eligible for following additional incentives

1. Land incentives ( Only for New Land)

a) 30 % Cost of land in MIDC Max 10.00 Lakhs

b) 20% Cost in Outside MIDC Max. 5.00 Lakhs

2. Power Tariff Subsidy : @Rs. 1 per units for period of 5 year

3. Special Capital Incentives

Sr.No Group Incentive % of

FCI Max SCI

In Lakhs

1 A& B 15 15

2 C 15 15

3 D 20 20

4 D+ 25 25

General Manager, District Industries Centre,

Udyog Bhavan, Kolhapur– 416003

Ph. 0231-2655438 / 2667805 Email- didic.kolhapur@maharashtra.gov.in

didickolhapur@gmail.com